tv Bloomberg Technology Bloomberg August 30, 2017 11:00pm-12:00am EDT
alisa: i'm alisa parenti in washington, you are watching "bloomberg technology." let's start with a check of your first word news. harvey pushes through louisiana today, but the tropical storm still poses a continued statewide threat of flash floods and tornadoes. schools and government buildings reopened after being shot a day the day before as concerns increased about potential flooding. congress returns today with lawmakers under pressure to avert a government shutdown. they are also under pressure on tax reform from president trump, who spoke today in missouri. pres. trump: i am fully committed to working with congress to get this job done, and i don't want to be disappointed by congress, do you understand me? [cheers]
alisa: speaking by his south korean counterpart today, defense secretary jim mattis told reporters we are never out , of diplomatic solutions on north korea. that is after president trump tweeted the u.s. has been paying extortion money for years, talking is not the answer. people against the fcc plan to roll back obama era net neutrality rules have until midnight today eastern time to make their voices heard. that is when the fcc costs public comment for them shuts down. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪
emily: i am emily chang and this is "bloomberg technology." coming up, tech's most valuable unicorn hints at an ipo. we will break down the plan for uber after the new boss meets the troops for the first time. plus, apple goes all in on the touchscreen and the home button becomes a thing of the past as the countdown to the next big iphone event begins. we have the inside track on the biggest design changes in iphone history. and warren buffett sounds off on tech. berkshire hathaway chairman and ceo speaks to bloomberg tv. we cover his biggest regret the -- in the tech industry and what industries are still ripe for disruption. but first, to our lead. the world most valuable startup could be going public sooner than we think. incoming uber ceo dara khosrowshahi met with employees and says he thinks the company wednesday should go public in the next 18 to 36 months. he also outlined some of his top priorities on the job, including coming up with a new set of
core values and bringing in a new chairman to help drive the agenda. uber's communications team tweeted out some of dara remarks, saying, this company has to change. what got us here is not what is going to get us to the next level. in addition to talking to employees, the ceo will likely get a seat on the board opposite former ceo and cofounder travis kalanick. meantime, kalanick has expressed interest in returning to a more active role of the company, since he was ousted in creating june, a potentially more awkward dynamic that dara khosrowshahi will need to manage. it was all smiles at the first meet and greet. arianna huffington shared this selfie showing the changing of the guard. joining us now in the studio, our bloomberg tech reporter eric newcomer, who covers all things uber, and brad stone, who wrote "the upstarts," a book about uber's humble beginnings.
he spoke to employees today. what did he have to say? eric: sort of jokes, celebrating travis's role in the company, saying some of what got them to this point is not what is going to get them ahead, and that obviously this conversation about the ipo, i don't know, 18 to 36 months seems pretty far to me, so it is a distant thing with lots of hurdles in the interim. this is a guy, dara khosrowshahi, who ran a company for a long time, so he understands. emily: what do you make of the show of camaraderie, all smiles, hugs? brad: it was not just what was said, but how it was said. this was a show of unity. one of the uber cofounders, the first ceo, introduced the proceedings. travis was there shedding tears introducing dara. arianna and other board members
were there. perhaps out of everyone on a very contentious board. there was a message sent to employees, probably drivers, and definitely the media and customers that they are trying to send, which is the dark days are over. they want to hit the reset button, get out of the headlines and repair some of the damage to the brand. emily: he says he is looking for a chairman. travis says he wants a more active role, obviously very emotional about the way this has unfolded. do you think that person could be travis? eric: for now i would say no. the board approved an independent chairperson, which would be someone outside the company. they would have to reverse themselves. emily: what kind of role could travis take on? eric: i think advisor could be the role for now. it is not clear if you will get anything more than that. brad: remember, this is still tied up in litigation. the other news today is that the lawsuit that early investors filed against travis is moving to arbitration, somewhat of a victory for travis.
his status on the board and the status of two seats he controls is still in question. pending the outcome, i think we will see what kind of influence he will retain. emily: let's talk about this suit moving into private arbitration. he was asking for it to be dismissed, which it was not. another early uber investor released a letter today and was actually in delaware to speak with the court. bear with me, i want to read a couple -- he is coming in on the side of travis, saying we are swimming in the crucible of one of the grandest business battles of our generation. we write with the souls of thousands of lives saved, millions of jobs created, liberating drivers from the shackles of servitude to iniquitous taxi cartels and corrupt cabals that choke cities with their pollution of air and morals. glad i got all that out. what is going on here? [laughter]
eric: i think he is a good friend of travis, wants to show his absolute support. he is a man of a lot of passion and communicating in his own way that travis has done a lot of good by creating uber, which he sees as a public utility that has broken up the taxicab coalitions. i think he is just trying to frame it in a perhaps overdramatic way. brad: the problem is, not only is the writing somewhat overinflated, but it comes at a terrible time. this was a day about unity and he is drawing more attention to the divisions that still are there. emily: what is the strategy? is there a strategy here? brad: i think he is trying to muster public support for what he sees as a divided board. it does not make the argument that persuasively. emily: what do you make of 18 to 36 months for an ipo? 18 months is sooner than we would have thought, right? eric: one of our columnists was joking, near enough to say it is possible that someday we will go
to an ipo, but who knows? it is so far away it is hard for , people to get their heads around and take too seriously. i think it is almost a nothing statement that sounds serious. brad: this is a company still growing quickly, but losing $6 million a quarter? he has got a lot of strategic decisions to make, where he wants to grow, where he wants to pull back. these ancillary businesses like uber eats, how much are they going to invest in those? with this statement i think he is buying himself time to get his ship in order, put off the pressure of liquidity that early employees have. i think this is the proverbial heisman stiff-arms to give him time while he figures out what is going on. emily: there have been reports about new hires. it seems to be nothing is set in stone yet. but there is a chance he could bring a whole new set of top people, right? eric: he needs to hire a lot of positions, cfo, coo, chief marketing officer.
there are vacant leadership ranks. i don't think -- it does not seem like anything is imminent on that front in terms of uber bringing somebody on. emily: we will keep watching, you will both keep us informed. thank you both. coming up, another bloomberg scoop on the next iphone. we will tell you what tricks ceo tim cook might have up his sleeve when he gets on stage next month. this is bloomberg. ♪ emily: the global music
the total number of subscribers is predicted to reach 847 million by 2030, an increase of more than 700 million people compared to last year. the report also says universal music and sony music will benefit heavily from this outlook. this year marks the 10th anniversary of the launch of the iphone. it looks like apple has big plans for its newest model. last week, bloomberg was first to report on several features of the new iphone, including 3-d facial recognition technology to unlock the phone with your face. now we have got a new scoop, of course. apple is planning to eliminate the concept of a home button. this according to images of the new device viewed by bloomberg news and people familiar with the gadget. the move would mark the biggest interface change in the iphone's 10 year history. joining us now, bloomberg tech reporter mark gurman. you saw these images. what did you see?
mark: some pretty cool stuff. i think iphone users are going to be very excited about this new phone. they have been working on this phone for a very long time, trying to add new features to make a big splash for the 10 year anniversary. the biggest change, getting rid of the home button. it is not going to be a virtual home button, it will be an entirely new system based around gestures and thumb controls. emily: the home button is actually staying on the 7 plus, we think. it is not completely going away yet. mark: right, there are going to be three new phones. two will have the general design of the current phones, the same screens, and they will have the physical home buttons. the big changes are happening on the premium, higher-end model. emily: we are getting some headlines about who will be replacing dara khosrowshahi at expedia. mark okerstrom will be becoming ceo of expedia as dara khosrowshahi moves on to take the ceo position at uber.
dara khosrowshahi is going to stay on the expedia board. he has been there for many years. we will bring you more headlines as we have them. back to apple. in addition to the home button, what else did you see? there are design changes, corners, the screen is taller. mark: what some people don't get is the new iphone is going to be significantly taller. you will see more of text message conversations, more of maps, webpages, other applications. a big change to the screen as well. emily: talk to us about what is going on with toshiba and the chip unit and apple's interest. mark: apple is always looking for a new way to get components for the lowest cost and highest quantity. they have done so many deals over the years to get as much -- it is called nand chips. they power the storage for iphones, ipads, newer mac laptops. it is absolutely critical to the iphone, just as the screen or
the cellular reception modem. they want to be able to get as many of those, and toshiba does great work. emily: what does this mean for apple in terms of performance and supply chain issues? mark: probably little in terms of performance, because a lot of nand chip suppliers are on par. however, having my suppliers get them more leverage. emily: do we know anything more about when we are going to be seeing this new phone? mark: yes, mid-september is what we understand is the plan to release the new phone, or to announce it. emily: i will be excited for the details to come. until then, mark gurman, bloomberg tech reporter. thank so much. coming up, consumers of the new iphone are not the only ones excited. we talked to the ceo of one of apple's semiconductor suppliers. this is bloomberg. ♪ emily: toyota is aiming to get
a bigger slice of the ridesharing market. the japanese automaker is investing an undisclosed amount in southeast asia's leading ridesharing service, grab. toyota's investment in grab will be through the $55 billion next technology fund set up in april. that fund, created by toyota, is seeking opportunities in innovative technology products and services. last year, toyota bought a small stake in uber while grab hold in -- pulled in $2 million in investments from didi and softbank. we just discussed details about apple's eagerly awaited iphone, but it is not just consumers brimming with excitement. suppliers are equally giddy as they look for new business opportunities. caroline hyde spoke with the ceo of one of the key semiconductor suppliers. take it away.
caroline: the dialog semiconductor ceo said new phones coming to the market help sell an exciting second half of 2017 for the company. we also begin our conversation with his outlook for growth in the mobile business. >> the mobile industry is growing a lot less than it used to. i think in any market of this size, you always find pockets of growth because of new things that happen or new geography that joins the market. so for us, i think given the huge size of this market worldwide, there are always areas we can identify growth. caroline: talk to us about the geographical layout. i am hearing india and china have been areas many of the mobile and phone makers have been positioning in. this is something that as the unit maker, you have to be in as well.
>> we work with the oem manufacturers. north america and europe is fairly saturated, so the majority of the business is replacement with new products. they have to be really exciting to stimulate demand. on the other hand, in many emerging markets like china in the last few years and more and more india, and i think other areas of latin america, middle east there is plenty of growth , as the smartphone pervades the use across the world. so those companies, for example, we are working with companies that primarily used to focus on north america or china. now they started exporting to southeast asia and india as well. that is how our chips get used. caroline: the chips in the mobile phone spring to mind. you are talking about potentially exciting new phones coming on the market. one of the big companies that
you supply to is apple. are you excited about the launch of the new iphone 8? how much is dependent on this product? >> we have been a supplier to this very successful company for a number of years, and along with all the other suppliers, we will watch this space and see what the new products are like and what they decide to use, but we have lined up exciting q3-q4 growth. pre-christmas, lots of new products get launched that use our chips. we are looking forward to the second half of this year. caroline: how much do you think your revenue will eventually be dependent on the mobile? >> mobile as a market is very, very large, so i think that will always be a dominant part of our revenue, and it is a very concentric market as well.
five or six major guys in that market have majority of the revenue, so that creates concentration, but it is a facet of that market. if you are successful, you have to be a concentrated player to a large extent. other emerging markets in terms of more electronics in cars, not traditional automotive but more new automotive in terms of beyond the dashboard into self driving and other technologies that have come on the scene. that creates more requirements for electronics chips and technology to be used. caroline: it sounds as though diversification is there. are we seeing diversification away from apple as well? this is the supply chain function of bloomberg, saying 75% of your revenue comes from this particular phone maker. we have seen what is happened to imagination technologies. how do you ensure the same future is not painted for yourself?
>> we are taking steps in both diversifying within customers and diversifying with other customers. we're making progress on both fronts, so we are in more than phones, in tablets, watches, notebooks. that is one way of diversifying so you are not dependent on one source of revenue. the other is the activity we have started in china in the past 3-4 years has started to bear fruit. we have partnerships in addition to touching pretty much all the top banks in china, we also have started a partnership with the chips manufactured in china, where we complement their chips. we provide the power, they provide the digital chips. spectrum, the biggest mobile chipset maker in china. through them, we can access who
le tiers of smaller customers, second-tier customers that we as a small company out of europe would not have access to. those are things we have put in place to ensure we have diversity. caroline: many people see you as a german-listed company, but you are u.k. headquartered. how is the current political situation? you are someone who came from iran to the united kingdom. this must be something that is close to your heart as well as your business, that immigration is something being looked at. how is that changing the way dialog semiconductor orchestrates itself when we're in the process of coming out of the e.u.? >> we are very much an international company, headquartered in the u.k. and we are very proud of that. the company started originally in the u.k. we are listed for historical reasons on frankfurt stock exchange. we will watch to see how the evolution of brexit works, what it means in terms of regulations
in different areas for us. to date, there has not been a lot of impact so far. we will watch, along with many other international companies, how that potentially affects the attraction of talent to the u.k. outside of that, today the conduct business all the way around the world. perg in or out of the e.u. se, i don't think will matter to us much. caroline: where are you going to build your next design center? >> i think it is likely to be in asia. we will continue to add talent to locations in europe and the u.k., but in reality, in terms of the number of engineers we need, we have to build potentially a design center in india. caroline: that was my conversation with dialog semiconductor ceo. emily: thanks so much. to recap our breaking news, expedia has named its cfo as its
new ceo. the company quickly filling the job after dara khosrowshahi unexpectedly quit to join uber. he just tweeted that he is honored to lead the world's greatest travel company through the next chapter. he has been working at expedia since 2011. coming up, we speak to the ceo of a leading cybersecurity company, symantec. how the business is faring in the wake of the recent cyberattacks. this is bloomberg. ♪ >> it is 11:29 a.m. in hong kong
and 1:29 p.m. in sydney. i am paul allen with the first word news. chen a continues to show signs of stability with the official factory gauge strengthening. manufacturing pmi came in net 57 point -- 51.7, up from 51.4 last month. the economy shows an across-the-board cooling in july. there is a turnaround for exports and strong domestic demand. president trump has threatened to dump nafta just as they were touting its success. sonny perdue said he has been trying to convince the in the --
administration it is good for u.s. agriculture. second round of talks start this weekend in mexico city. the president said he is determined to put america first. regulators have approved a revolutionary new cancer treatment that involves agentting and modifying -- patients' cells. they say it will only be paid if patients actually respond. despite the high cost, they expect limited revenue because of the relatively small number of patients. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> i am sophie kamaruddin with a check on the markets. asian bonds and stocks are mixed with plenty -- a firmer dollar dragging on asian stocks. the kiwi is back to the 70 to
send level. an initial boost of china pmi level. the hang seng is back to 28,000. the kospi is losing ground. in seoul, most factors in the red. led lower by utilities, consumer stocks, and financials. the kospi had two weeks of gains as a central bank flagged the outlook. hong kong, shares falling from a two-year high. construction bellwether sinking over 8% this morning on the hang seng. energy is rising, leading the day with the distributors. bc shares leading the drop.
they are seen as excessive. results are helping the likes of gaining to aers december 2015 high. the hang seng on the back foot today. ♪ emily: welcome back to "bloomberg technology." i am emily chang. symantec has released new research on global ransomware threats. the annual report provides a comprehensive look at the key ransomware attacks from this year so far. including the arrival of self propagating threats like wannacry, which affected more than 150 countries and 200,000 people. one key finding, during the first six months of 2017, businesses accounted for 42% of all ransomware infections. joining us to discuss, symantec ceo greg clark. great to have you back with us. what were the highlights of the latest report? greg: i think the effect of ransomware is definitely with us from wannacry.
and petya. i think the average price settling in the $500 per infection range. i think interestingly, tools for making this kind of ransomware have emerged. we found one in china made for criminals by criminals. it allows them to mint ransomware attacks for android and participate in financing. something to really care about. emily: symantec has experienced inflation prices are going up. , greg: absolutely. we think this kind of stuff is going to be with us for a long time, more than crypto logging computers. maybe things extortion related, something consumers and businesses need to care about for a long time. emily: what do you think when you look at the cyber landscape? things are moving quickly. what are the big threats? greg: the threats are broad-based. there is an easy way to make money through ransomware. there is also a massive plague in identity theft that is with us across the world.
protecting your identity, making sure you have services that alert you about your identity being stolen, protection of your credit, is important. there is also the huge proliferation in the home for consumers around iot devices doing bad things, emanating from the house. this is another crisis we have to be careful of around the globe. emily: symantec has been making a lot of acquisitions. some said the company is going through a complete makeover. what is the actual integration strategy? greg: we have made two big transformational acquisitions, blue coat on the enterprise side and lifelock for the protection on the consumer side. those have gone well. we have been reporting on those in our quarterly calls. i think our consumer business has grown very well. we had been down 8%, now after lifelock up 1% in the same period. we just did two other small
acquisitions, one called fire glass focusing on the area of isolation. we do not let the bad code or malware get to your endpoint or server. it runs in the cloud. very powerful technology. the other one, sky cure, brings us up to best in class on a mobile platforms. emily: you just finished a trip around the world and are seeing emerging trends that really changed the cybersecurity landscape. greg: i just circumnavigated the globe in the last few days, just got off the plane from new delhi. emily: thank you for coming in. greg: i think a couple of things. some of the economies in apac are moving to a cashless economy, digitization efforts. i think in india now, you have your bank account on your phone and you can do your e-commerce and things in an emerging economy. the attack surface increases massive, you have the ability to get a banking and payments on the phone, you have a lot of criminal activity.
this is something i think is going to play globally for quite some time. emily: the security environment, in the light of petya and wannacry breaches, what is demand like? greg: i think demand is fantastic. we are seeing demand in consumers is on the rise. the enterprise is great. even in emerging markets like india, we just launched a service to bring all of these cyber defense capabilities to customers. those conferences were packed, the follow-up was amazing. we are in a situation of strong pipeline building. emily: greg clark, ceo of symantec, giving us the cyber update. thank you for stopping by fresh off the plane. paypal is turning to the physical world to extend its reach in the digital world. introducing a credit card that offers customers 2% cash back with no annual fee. the move is part of the ceo's effort to transform paypal from
a payment button on websites into a financial tool used in brick-and-mortar stores. he has forged 24 deals over the last 18 months with companies including apple, visa, and jpmorgan. coming up, vmware's roster of cloud computing partnerships grows. my conversation with the ceo, next. this is bloomberg. ♪ emily: vmware, the cloud
computing company under the dell technologies umbrella, announced several new partnerships with google and amazon web services from the company's annual conference. i sat down with the ceo at the event for an exclusive interview and asked how current partners reacted to the latest cloud partnerships. >> we have those conversations,
we update them, we want no surprises because we are trying to be very thoughtful in our relationships with them. clearly, amazon says, will this work on the amazon service we just did? ibm, they are also a working partner, pivotal in that community. it is really important for us, just like you would. think about these partnerships like friendships. i may do some things you did not necessarily want me to do, but let me explain, i don't want to surprise you, i want to see if there are opportunities for us to work together in different ways, so that is how we approach working with our ecosystem partners. emily: does the term frenemy apply here? >> we just say friends. emily: are you concerned a partnership with amazon could lead to them stealing your business? >> absolutely not. several have asked that question.
customers if they wanted to just , moved to the amazon service, they would have. it is not like the amazon service appeared yesterday. it has been around for a decade-plus now. for customers have found, emily, is that to re-platform my application is hard and it does not give me a whole lot of value. yesterday, had the app, tomorrow i have the app on amazon cloud. i had to put a lot of work to get it there. that is the problem we are solving, because we are going to customers and saying, you can take advantage of cloud scale, geography, and economics without re-platforming the application. in many cases, these applications we are bringing, they might have been curated for 20 years, 30 years, building those complex networks, security, management, and we give them an easy button. amazon is excited because they have heard that from their customers, too. emily: it has been about a year since the biggest merger, the
biggest tech deal in history. what has it been like for you under the dell technologies umbrella? the high points in the pain points. >> we announced the merger, michael and i got on stage. i said three words describe it -- independent, ecosystem, and acceleration. we are an independent company. we are governed by the board, dell, they happen to be a large shareholder -- emily: so michael does not bug you too much? >> of course he bugs me a lot, he is the chairman of the board but i am managed managed by the board. he is committed to our independent ecosystem, and he is going to accelerate his business with us. so we set a $1 billion energy. -- synergy. clearly the independence is working just great. the board is happy when the company is doing well, boards are happy. ecosystem. think about the partnerships we have announced. ibm, amazon, the hp announcement this week. all of those are not necessarily
in the traditional view of dell's best interests. michael says if it is good for vmware, it is good for dell technologies. the ecosystem is being supported. finally, we raised our guidance for the acceleration. last quarter, we did that. overall, we are seeing themselves of our products and build more new products together. overall, we are exceeding the expectations we had a year ago when we announced the deal. emily: how is the networking business doing, still growing rapidly? are you seeing meaningful competition from cisco? >> networking is going great. we are seeing the effects of the vision i laid out. it is really bold in the sense that it is between data centers, between clouds, cross clouds, we are stretching it to be iot and into the core service provider network. today's announcement is a next-generation container.
we are viewing it as this common fabric that connects all these things together, turning data centers into centers of data that have this connection everywhere they go. so going very well. the relationship with cisco, they continue to view this -- boy, that networking layer, but we are in this hardware business. what we are finding is customers are running a lot of the overlay network on their hardware, and that is ok. it works great, we support them. maybe half of our customers run it that way. but our vision is much bigger, much broader than any traditional view of networking. that is why it is a really thrilling period for what we are doing in that business. emily: a last question about security. are you you just unveiled a new security product. how concerned are you at the level of threat that we are seeing from cyberspace? will the industry ever be able to really get ahead? >> as i declared in my keynote
on monday, i think we in the tech industry have failed our customers in security. we have almost 2000 different companies in security. we have mind-boggling innovations, but there are so many products that are chasing bad. what we need to do is think holistically in a very different way to solve the security dilemma. we call it enforcing good. we announced new products that are app defense, in particular, but we said three things we need to do to fundamentally change the game of security. one is it is not about infrastructure. infrastructure must essentially eliminate many of those products and make it secure infrastructure. literally, products and companies go away, they disappear into the infrastructure. you can't turn it off, it is always secure. second, we must integrate into the core security ecosystem, automate, integrate, validate so
customers are not trying to put these pieces together, we have done it for them. third, enable consistent cyber hygiene. we have been real involved with the u.s. government. we had representatives and senators talk about cyber hygiene, they are introducing legislation. we laid out our five cyber hygiene principles, that if you would do these things, you would not be sony opm targets. the surface area of those would be radically reduced, if not eliminated. like a great sports team, you practice the basics. if people are practicing the basics and implementing these things consistently, we think we would eliminate a large portion, maybe 80% or 90%, of all cyber losses. so we believe this is the right way to think about security in the future. vmware are stepping forward in a much bolder way, partnering with dell and our ecosystem.
it is time to change the game on cybersecurity. emily: vmware ceo pat gelsinger. a recent filing by berkshire hathaway show the company reduced its stake in ibm. berkshire trimming its position from about 64 million shares to 54 million as ibm stock has fallen more than 14% this year. david westin spoke with the berkshire chairman and ceo warren buffett about his investment in ibm. >> i have made lots of mistakes. that is part of the game. somebody says you never made a mistake, check them out. that was a fairly large commitment. i would say what is really fascinating to me is what amazon did with the cloud. here is a company that you don't even think of as being in that business six or seven years ago, and jeff bezos has really taken
something you would not have thought they would be doing, and from a standing start -- he even said on charlie rose he was amazed at how much runway he was given -- but here are very smart people in the tech industry around him, not just ibm but microsoft, google, you name it. they all let him have a big lead. you don't want to let a smart fellow have a big lead. emily: bloomberg's david westin there speaking with berkshire hathaway chairman and ceo, the one and only warren buffett. coming up, after a big push for diversity in tech this year, where does it stand for those just entering the field? next. this is bloomberg. ♪ emily: there has been
science participation in u.s. education, according to code.org. in just four years, the organization has gone from zero students to 20 million on the platform today. joining me right now, code.org ceo and founder hadi partovi. great to have you back here. it is back-to-school season. you guys have made incredible progress in just the last four years. you were on the show when you launched it. talk to us about where the organization is today. >> code.org's mission is every school should teach computer science so every student has the opportunity to learn it. the opportunity to learn it should not be based on the color of your skin or the neighborhood you live in. when we started, only about 10% of schools taught computer science, now almost 40%, which is a huge change in u.s. education. the number of students learning computer science, especially girls and minorities, has exploded. what we are so excited about
today is to talk about the ap computer science exam, the advanced placement exam, a college-level course being taught in high schools that never taught computer science before. both girls and underrepresented minorities are flocking to this exam and course at a pace never seen before. emily: give us some of the numbers. how much progress are you seeing among girls? >> code.org has 20 million students, 9 million girls, almost 50-50, which is incredible. 9 million girls is huge compared to the entire software industry, which has about 250,000 women. we have 9 million kids who are women learning from grades k-12. emily: what about underrepresented minorities? hadi: among minorities, 48% of our students are underrepresented minorities, almost 10 million. emily: these are kids who are taking classes like they would take math. have you make sure they stay engaged? how many of those will lead to jobs in the industry? hadi: we teach computer science
not just for jobs. you learned biology when you went to school not because you would be a biologist or you learn how electricity works and you are not an electrician, in today's age everybody should , learn the basics of how the internet works. among our students, 70% say they want to study computer science after high school. that is going to make a huge difference given there are so many more in the k-12 system now than in the traditional workforce. emily: you have started several companies, worked at tech companies. i am curious what you thought about the memo from james dam ore, the memo from the google engineer that was controversial where he argued there are , biological reasons that there is an underrepresentation of women in tech and leadership. what did you think about that? hadi: i had a number of thoughts. whether he said it or not, i have heard a lot of people ask me since then, is there any difference in girls and boys in terms of learning to code? there is strong research that shows there is no genetic
difference in terms of the ability to learn computer science. there may be other differences that make it harder for women to work in the tech workplace, but it is not a difference in their ability to learn how to do this stuff. i have an eight-year-old daughter and i challenge anybody to bring an eight-year-old boy to challenge her at coding and see who is better. i do think there is a huge cultural problem in our society around the differences between men and women and making it comfortable for women to succeed in the tech space. emily: which brings us to what is going on in the tech space. we have the james damore story and stories of sexism and sexual harassment coming out of the venture capital industry, also uber. how much do you think the industry and these issues affect the pipeline, affect whether young girls want to continue studying computer science, whether or not they can do it? hadi: it is really important to them. young girls in high school, they read the news, they see what is happening, especially if they are in a computer science class.
in code.org's classrooms, we talk about diversity, we prepared the teachers to raise these issues to compare the growing female workforce in tech to know how to be ready for this environment. we need all stages of this pipeline to change in the k-12 space, which is what we do, and corporations need to adjust. emily: what is silicon valley's role? hadi: one big part is a lot of silicon valley funds code.org, companies like microsoft, facebook, google, amazon. .org.are all funding code to the extent you expect them to do something about their diversity problem, the fact our classrooms are 45% female, a lot of that is thanks to the work of these companies. they also need to do the work to make sure their internal culture goes to their unconscious bias training, hiring practices to be more fair. emily: hadi partovi of code.org, great work you guys are doing, thanks for stopping by. that does it for this edition of "bloomberg technology." this thursday, we will bring you a special devoted to cryptocurrency, a $150 billion industry. this is bloomberg. ♪
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